BUREAU RATE

A standard price per unit of insurance set by a state's insurance rating bureau, the association of all the insurance companies authorized to write particular kinds of insurance in that state. The different insurance companies in the state combine their data on claims and losses to improve the statistical soundness of insurance rates.

An insurance company may choose to charge a lower rate than the bureau rate. An example of how it might choose to charge a lower rate would be a persistency discount, or a discount given to a customer for keeping a policy in force with the same insurer for a particular number of years. Insurers also have the option to file for deviated rates, which must be first approved by their state's insurance department.